Index fund is a passive fund, with a specific index as the target index, and the investment object of index fund is the constituent stocks in the specific index. So today, Bian Xiao is here to sort out how to buy index funds to make money. Let's have a look!

How to buy index funds to make money?

Investment and financial management are risky, and no one can guarantee that they can make money 100%. The same is true for buying index funds. Although the risk of index funds is low and the expected return is relatively stable, index funds also have risks and cannot guarantee 100% to make money. Our investment and financial management method is only used to reduce our investment risk, but it can't completely eliminate the risk, and try to improve our expected return at a lower risk. The purchase methods of index funds mainly include the following:

1. Choose a relatively good fund.

There are many kinds of index funds, and it is difficult for us to choose the best one, so we can only choose the relatively good one. How to choose a good fund? There are two main aspects: first, choose growth index funds, which are more active and have a greater possibility of rising fund prices. Second, choose an index fund with small investment tracking error, which refers to the error between the index and the target index. The smaller the investment tracking error, the stronger the fund manager's ability. The stronger the ability of fund managers, the less risk we have and the greater the possibility of making money.

2. Pay attention to the target index

Each index fund has its own underlying index, and the underlying index of different index funds may be different. The influence of the underlying index on the fund is very great, because the index fund aims to keep up with the changes of the underlying index, so we should have a clear understanding of the underlying index of the index fund we bought, pay attention to the investment direction of the underlying index, and study the changes of the investment direction market.

3. Minimize the purchase cost.

Buy when the fund price is undervalued. At this time, the net value of the fund is relatively low, and the same amount can buy more shares, so the cost is lower. Choose smart fixed investment or irregular fixed investment when setting the fixed investment mode, so that you can buy more shares when the index fund falls and buy less shares when the fund rises. In this way, you can reduce the cost of holding positions by increasing the share of positions, spread risks and wait for the rebound of the fund's net value.

4. Set the take profit point

According to their own risk tolerance, expected income, investment preferences and other factors, set a profit point in advance, choose redemption when the fund reaches the profit point, and then make the next round of fixed investment. This can reduce the risk of the fund falling again, and at the same time, it can put the funds in the bag for safety.

How to invest in narrow index funds?

The coverage of narrow-based index funds is relatively small, mainly investing in certain industries, and the risks are relatively concentrated, so the risks of narrow-based index funds are relatively large.

Narrow-base index funds and other index funds actually invest in the same way. The difference is that the fund managers of narrow-base index funds have a greater influence on the funds, so it is necessary to choose the right fund managers, and the other is to choose the right industry.

How to buy an index fund with a fixed investment?

To buy an index fund, you only need to find an index fund on the fund trading platform and choose a fixed investment. The trading platforms of the fund include bank APP, brokerage platform, Alipay and WeChat. Taking Alipay as an example, the steps of fixed investment of index funds are as follows:

1. Download and install Alipay software on mobile phone.

2. Open Alipay software to register and log in.

3. Open the Alipay homepage, and there is a "financial management" function navigation at the lower left of the homepage. Click on the "financial management" function to navigate.

4. Find the "Funds" function navigation at the top of the financial management interface, and click it.

5. Find the "index fund" function in the fund interface, and navigate and click.

6. In the index fund interface, you can choose a fund that suits you to make a fixed investment.

Index funds include on-site index funds and off-site index funds, in which on-site index funds cannot set fixed investment, while off-site index funds can set fixed investment.